RREEF Real Estate Acquires Landmark, 'Zero Carbon Emission' Property For Grundbesitz Europa Fund
RREEF Real Estate, the real estate investment business of Deutsche Bank's Asset & Wealth Management division, has acquired a 51 per cent share in an award-winning 'zero carbon emission' property in central Manchester, a major city located in the North West of England, for £142 million (€166 million) on behalf of its German open-ended real estate fund, grundbesitz europa. A foreign institutional investor advised by RREEF Real Estate acquired the remaining 49 per cent of the property.
One Angel Square, Manchester, completed in December 2012, and comprises 329,218 square feet (30,600 square meters) of energy efficient Grade A office space with 151 parking spaces, and strong transport connectivity. The property is leased to the seller, The Co-operative Group, until 2038, with an option to extend the lease beyond 25 years.
The building forms the centre piece of NOMA, an £800 million integrated mixed-use development scheme which is the largest development project in the North West of England and overall is the largest development outside of the South East of England. The building has BREEAM Outstanding sustainability certification, and has been awarded an A+ Energy Performance Certificate, given only to buildings with zero carbon emissions. Additionally, the building has received several sustainability-related awards, and is shortlisted for 'Best Office and Building Development' at the internationally acclaimed MIPIM Awards in Cannes next month.
Georg Allendorf, Head of RREEF Real Estate in Germany, said, "Sustainability was the driving force behind the acquisition of One Angel Square – from the location in the NOMA redevelopment area, to the property's trend-setting architecture, its sustainable operations and its overall commitment to sustainability."
David Pringle, Director of NOMA, added: "The sale and leaseback of One Angel Square will release the value tied up in a non-trading asset, enabling The Co-operative Group to reinvest these funds in delivering its strategy of growing its core trading businesses to best serve members and customers.
"The building is market leading in terms of construction, location and facilities, and is the most environmentally-friendly large office space in Europe. With future-proofed design and build, coupled with outstanding transport links, One Angel Square sits at the heart of NOMA, the 20-acre redevelopment set to transform the Northern district of Manchester city centre over the next 10 years."
As of 13 February, grundbesitz europa has approximately €3.7 billion in assets under management, including 44 properties – of which six are located in the United Kingdom (28%) and seven are certified to be sustainable, or are in the process of becoming certified.
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